Exams never really end. Especially for Elon Musk, the undisputed icon of capitalism 3.0 which promises to stamp its original stamp also on the "Roosevelt moment" of President Joe Biden who today (or at the latest tomorrow) will launch his new deal: 1.900 billion dollars, including 465 billion in cash to be distributed among American citizens with the goal of restarting the engine of the economy. A party that everyone can participate in, as long as they do not have a per capita income of more than 75 dollars (or 150 in the case of families). In this case, all adults, or 90 percent of Americans, will pocket 1.400 dollars in cash, the fuel to get the first consumption off the ground, from the cinema to the restaurant, after months of forced closure at the time of the pandemic.
But, judging by the first polls, a good chunk of Yankees will snub Mc Donald's or the drive-in, preferring to allocate the mini-swallow to a new type of pastime: the Stock Exchange. It seems that the most likely destinations of the money given by Treasury Minister Janet Yellen will be Wall Street or, easier, Times Square where she is based the Nasdaq, the home of the big names in technology, starting from Tesla's father-master, object of the (reciprocated) love of legions of traders, the Robinhooders, who crowd the electronic platforms by the thousands. Next week, when the longed-for check arrives from Washington, a good portion of capital will take the road to the stock exchange. Suspicion is almost a certainty if you look at the leap, about +40% since Monday, achieved by Game Stop, the company disputed by traders against hedge funds who recklessly bet downwards on the stock, provoking among other things the mockery of Elon Musk, great enemy of the short selling of which Tesla has always been a victim.
Now the battle resumes. Great. According to experts, Americans between the ages of 25 and 34 will invest 50% of the government bonus in the stock market, a percentage that drops to 40% among the youngest, 18-24 years old (probably the age group in which the genius arriving from South Africa enjoys the greatest sympathy), to rise again to 37,5% among senior shareholders. It is not difficult to predict that part of the capital will end up in Tesla, even if there is the deterrent of the price: at current prices, the bonus can be used at most for the purchase of two Teslas. But a good part of the secret to Musk's electric car success is tied to the purchases of Ark Innovation, the ETF that broke all records under the management of Cathie Woods, energetic and combative, no less bizarre and brilliant than Musk himself, a magnet who has gathered around him a strange company of scientists and visionaries with the aim of making money with the most disruptive technologies.
And she succeeded: his funds broke all records in performance, amassing $25 billion in assets. Thanks also to the following collected on Redditt, another point of reference for the Robinhooders. Miss Woods, like Musk, has paid a heavy toll on the sector rotation unleashed by soaring bond market yields. But the landslide, with double-digit losses and the flight of the most fragile investors, hasn't shaken her certainties too much: "a reduction like this - she said over the weekend - is a colossal buying opportunity" . And her facts proved her right: yesterday, the ETF rebounded by 10 percent. Nothing exceptional when it comes to Tesla.
Tuesday March 9 the stock has achieved a 20% increase after trades for 43 billion dollars (by far the most traded stock) increasing the capitalization by 100 billion dollars, but still remains 20% below the highs reached at the end of January and the targets of analysts: Pierre Ferragu of New Street Research yesterday raised its target from $578 to $900. It is with these premises that Elon Musk, on the strength of the charisma accumulated thanks to his, is a candidate to be the symbolic character of the shooting season without sparing surprises: the latest is the announcement via Twitter (48 million followers) of the birth of Starbase, the city that Musk intends to found in Texas, in the heart of the desert, on the border with Mexico, near Boca Chica, already sung by Bruce Springsteen.
It will be a space base modeled on the model of a modern hi-tech private city, with autonomous rules and its own laws, where money is immaterial and company CEOs have the role of mayor. Energy self-sufficient, like the Gigafactory Tesla he built in the suburbs of Reno, Nevada. Other than the New Deal. “Do you think I'm crazy?” Musk asked point blank to the journalist who was interviewing him. Have some crazy like that.
